First it was Sears, Then K-Mart, JC Penney's and now Toys 'R Us is the latest large retailer to file for chapter 11 bankruptcy protection.
The company said it will continue to operate as usual its approximately 1,600 Toy R Us and Babies R Us stores around the world.
Dave Brandon, chairman and CEO of Toys "R" Us, wrote a statement on the company's website saying that the bankruptcy filing signifies the beginning of a new chapter for the company in effectively handling its financial problems. In 2005, taking the company private, Bain Capital, KKR & Co., and Vornado Realty Trust loaded it with $7.5 billion in borrowing, and the company has been hamstrung ever since.
Vicky Contoudios, 36, who is visiting NY from Brisbane, Australia, said she was shocked to hear of the bankruptcy and hoped the company wouldn't fold.
The company said its Canadian unit intends to seek protection in parallel proceedings under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice.More news: US Air Force scrambles aircraft in response to latest NK missile test
"We are confident that this process will enable us to leverage Toys " R " Us' existing strengths to succeed", continued Teed-Murch.
It is one of 12 new stores the Toronto-based retailer will open by the end of 2017, "the largest single year expansion in the company's 33-year history", the company said in a release.
Globally, Toys "R" Us operates or licenses more than 1,950 stores in 38 countries and jurisdictions, employing 60,000 full- and part-time employees.
The chain could have avoided bankruptcy for another two years but "it would have delayed the inevitable", according to Tuesday court testimony by David Kurtz of Lazard, an investment bank advising Toys "R" Us.
Toys "R" Us hopes to restructure its debt, get a new growth plan and reorganize its stores.More news: Bayley Returns, Added to No Mercy Title Match
"Oh my God, they are very important, and people don't understand", Isaac Larian, founder and chief executive officer of MGA, said of the toy chain.
Even though 40 per cent of the chain's sales happen during November and December, there are lots of reasons why retailers file for bankruptcy and it's not necessarily a death sentence. Both in-store and online at mastermindtoys.com, Mastermind Toys said it offers an expertly curated selection of more than 10,000 of the best specialty toys, games and books, including first-to-market and exclusive items at a variety of price points.
"It will sell some of its commercial real estate, at least those parts of it that's marketable, to raise cash and pay creditors; and they'll buy a little time to continue in business". Toys " R " Us, Inc.is the world's leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands.
The Associated Press reported that GlobalData Retail estimates that in 2016 about 13.7 percent of toy sales were made online, up from 6.5 percent five years ago.More news: Sardar Sarovar Dam faced many obstacles, but we were determined: Modi